Headlines: Investment Spotlight | Living in Paradise: Stop Dreaming and Start Doing Via Self-Directed IRAs | Prelisting Inspection
Spotlight Client
Ted Parsons - Big Apple Bagel
Ted Parsons just purchased a Big Apple Bagel franchise, but not for himself. He bought the franchise for his son, because his son always had the entrepreneurial spirit and he wanted to help make his son’s dream come true. Ted was able to purchase this franchise by utilizing his existing retirement monies with help from Guidant.
“The biggest advantage of using Guidant is that their employees have a significant amount of expertise within the organization that is shared among their employees,” says Ted. “The best feature of the Audeo structure is that you are investing in a franchise without taking out a loan. Looking back, Guidant made the process very simple and helped make my son’s dream become a reality.”
To be considered as a featured client, please send your business success story to Lindsay Downing.
Spotlight Business Partner
Phyllis Pieri – MatchPoint Senior Consultant
Phyllis Pieri is a senior consultant with MatchPoint, a consulting network that is dedicated to helping you find a franchise that works for YOU. MatchPoint offers a free service to people who are thinking about getting into a franchise business of their own. MatchPoint consultants help prospective clients conduct a thorough analysis of what they want out of their business and then act as advocates for their clients.
Phyllis has over 25 years of franchise industry experience. She has owned and operated franchise businesses, and she has been advising and coaching people in the world of franchising for many years. Phyllis has first-hand knowledge of what franchisees go through, and she has the passion to help place people with the right franchise so they are able to succeed. Due to her extensive knowledge in the franchising industry, she has recently been interviewed and heavily quoted in some of the Northwest’s top publications.
Phyllis can be reached at 425-369-2391 or by email at ppieri@matchpointnetwork.com. For more information on MatchPoint, please visit www.matchpointnetwork.com.
Spotlight Franchise
Sport Clips
Sport Clips caters to men and boys by providing hassle-free hairstyling in a sports-themed environment. Since its creation in 1993, Sport Clips has continued to be ranked consistently as one of the top-performing franchises. In 2007, Sport Clips was ranked in the top-75 franchises in the nation and in the top-50 for the fastest growing franchises by Entrepreneur Magazine.
Sport Clips recognizes that training and support are vital to a franchisee’s success. They offer extensive training and marketing support that include over two weeks of training and national media exposure. For more information, please visit www.sportclips.com.
Investment Spotlight
Name: Anthony Moreno
Previous Employment: Nuclear computer technician at San Onofre Nuclear Generating Station for over 24 years
Investment Purchase Date: January 2007
Investment Payment: $850,000
Investment Description: a 68-acre private island 300 yards off of Roatan Island in the Caribbean Honduras adjacent to one of the world’s largest seahorse colonies
Motivation: “The potential for making my dreams come true, of owning international real estate.”
Investment status: Plans underway to develop a day spa on the private island and ferrying cruise-ship passengers by private speedboat to his island. Carnival Cruise is building a $50 million terminal at Roatan Island that will be able to accommodate two mega-ships and 7,000 passengers a day. Moreno plans to tap into this tourist market and have his self-directed IRA reap the majority of the profits.
Living in Paradise: Stop Dreaming and Start Doing Via Self-Directed IRAs
By: Sharon Faiola Petersen
It’s easy to get so caught up in buying and selling real estate that we forget about our own needs. Where will you live after you retire? Will the market be favorable to buyers at the time you need to purchase a place?
Most of us have the picture of our dream retirement home tucked away in a corner of our mind. It’s time to take that vision out and start acting on it – especially if your dream is to live in the country or in resort neighborhoods. These properties are being snapped up quickly by those desiring vacation homes. In fact, according to recent reports, vacation-home sales are beating out the sales of investment homes. This means that the charming condo you’ve had your eye on ever since you honeymooned in some little slice of paradise may no longer be there by the time you retire. Or it will be so exorbitantly priced, it will be untouchable. So the time to buy is now.
Don’t let a lack of capital dissuade you from making that purchase. Thanks to self-directed IRAs, you can use your retirement funds before you retire to buy your dream retirement home. And to make the investment, you don’t have to take a distribution or pay additional taxes or penalties for using that money. While you can’t purchase a house that you will live in now, you can purchase it and rent it out. Or you can just let it build in equity within your IRA for the time being. Once you hit retirement age, you can then take your standard distribution and essentially purchase your dream home from your IRA.
This is an especially powerful tool if you are investing with a Roth IRA, because, with this model, you can just take a simple distribution and you are on your way to relaxing in your version of paradise.
Renting your investment home for additional revenue is an excellent way to funnel additional money back into your IRA – the same way you would with earnings from stocks and bonds. So, while you can’t travel the world now using that rental money, it will still be growing inside your IRA. And you’ll have the reassurance of knowing that your dream retirement home is waiting for you to take occupancy when the time is right.
An experienced retirement account facilitator, like Guidant Financial Group (the company I work for) will be able to give you some more details. Meanwhile, here are a couple of links that touch on self-directed IRAs and the purchasing of retirement homes, as well as the popularity of vacation properties:
Prelisting Inspection
By: Tess Noel Baker, National Property Inspections
The key to selling a house is making it feel like home to prospective buyers. That could mean taking down some of those family photographs, baking homemade cookies or doing a bit of spring cleaning. Of course, it’s important to make your house look inviting, but what if there was a way to dig a little deeper? A pre-listing inspection by an unbiased third-party professional can help you do just that.
What is a pre-listing inspection?
A pre-listing inspection is a complete assessment of the functionality and condition of major home systems done on behalf of the home owners. The inspection is completed before the property goes on the market giving homeowners the opportunity to correct any defects prior to showing it to prospective buyers. The inspection itself will usually take 2-3 hours, although this can vary depending on the size of the home, number of heating and cooling units and age of the home. The inspector will visually assess the mechanical, plumbing and electrical systems, the roof, exterior cladding, drainage system, grading, decks, sidewalks, garage and more. The home owner is asked to attend all or part of the inspection to review any of the findings or ask questions about areas of concern. Following the inspection, you will receive a report outlining the findings.
Benefits of a Pre-Listing Inspection
Selling anything requires inspiring confidence in the buyers. These are people looking for someplace where they feel safe and secure, possibly a place to raise their children. Buying an existing home comes with some risk. It has already undergone wear and tear. It is an unknown. A pre-listing inspection, because it is a third-party review, offers an unbiased opinion of the condition of your property, building trust between the buyer and seller.
Pre-listing inspections can also: reduce negotiation time for closing, decrease the time it takes to sell the home, pinpoint safety issues of concern to the sellers as well as the buyers and reduce the home owner’s liability through full disclosure.
Using the Report
Armed with information, the homeowner now has a choice how to proceed. Distribute a clean report during the open house to build confidence, or make repairs to fix problem items. In many cases, items pinpointed in the report can be fixed relatively easily. Inspectors may be willing to return once any concerns are addressed for a re-inspection you can then distribute to prospective buyers. This will show that you have been proactive in maintaining your home.
Finding the right inspector
Whether you decided to do a pre-listing inspection on your own home, or a general inspection on a property you are looking to buy, it is important to find a knowledgeable professional to do the job. You are looking for someone with training and experience in home inspections, including construction and building standards, an understanding of good maintenance practice and clear communication skills. Start by asking friends, family or your real estate agent for a referral. When you contact the inspector, be sure to ask the following questions:
What will be inspected? The inspection should cover all major home systems, (electrical, mechanical and plumbing), exterior cladding on the house and roof, the garage, windows and doors.
What kind of report will I receive? The industry-accepted report format is a combination checklist and narrative format. Findings should be understandable and easy-to-read.
Do you carry insurance? Inspectors should carry some form of errors and omissions insurance.
Will I be able to ask questions during the inspection? The inspector you choose should be available to answer any questions you have.
Many states have passed licensing laws that govern home inspectors. If your state has licensing laws, be sure your inspector is in good standing with the licensing organization.
Tess can be reached by email at tessbaker@npiweb.com or by visiting www.npiweb.com or www.gpiweb.ca.
